The government has made use of the recession in the four years of unrest in Egypt since 2011 with a general restructuring plan.
This began with the replacement and development of all hotel assets owned by the Holding Company for Tourism, Hotels and Cinema, owned by the state through the Ministry of Investment, according to company chairwoman Mervat Hatabah.
Speaking at the company’s general meeting last Thursday, Hatabah said the development work over the past few years aimed to maximise future revenues. The work also looked to increase the company’s competitiveness, as well as create jobs and keep the company’s assets while increasing their efficiency. During the meeting, discussions took place over its balance sheet and the board of director’s report on results of the fiscal year (FY) 2013/2014 in the presence of Investment Minister Ashraf Salman,
The company’s total revenues reached EGP 22.3m in FY 2013/2014, compared to EGP 28m in FY 2012/2013, according to Hatabah. She added that the company has nine subsidiary companies with investments worth EGP 473m in FY 2013/2014, compared to investments worth EGP 335m the previous year, an increase of 41%.
In a press release, Hatabah said: “Subsidiary companies of our company achieved revenues worth EGP 868m in FY 2013/2014, compared to EGP 1.019bn in FY 2012/2013, with a total amount of wages of EGP 507.6m until June 2014, with an increase of EGP 60m, compared to the same period last year.”
She added: “Tahrir Hotel project, and the administrative building owned by the company are established with a cost of around EGP 450m. The initial project delivery date has been expedited seven months from the original date to be in May 2015 instead of December 2015.”
Regarding Luxor Hotel, Hatabah mentioned that the hotel will be established in cooperation with the Endowments Authority, with a cost of EGP 130m. Phase one was completed and phase two is to be finished in mid-2016. She added that the company seeks to complete work in Fantine Hotel in Aswan, owned by Egoth, with investments worth approximately EGP 194m, and the hotel is expected to be finished by the second quarter of 2015.
She explained that development work at the Nile Ritz hotel will be finished in March 2015 by Misr Hotels Co. The opening of Suite A at the Mena House Pyramids hotel will take place in the first quarter of 2015, with an investment cost of about EGP 60m.
The company seeks to launch a project in Tanta, owned by Egyptian Industries Selling Company, in cooperation with a construction company to build a commercial administrative residential project for revenues of EGP 64m within two years.